Eczellon Capital, an investment bank operating in Nigeria and other West African markets, has announced the launch of a West Africa-focused private equity (PE) fund with a target size of $250M.
The seven-year fund has a target compound annual growth rate (CAGR) of 30% over the fund’s lifetime, according to Diekola Onaolapo, CEO of Eczellon Capital.
“We are targeting deals in energy, infrastructure, oil and gas, power generation, and a few other active growth sectors in Nigeria,” Onaolapo said.
“Assets are much cheaper now with the recent stock market sell-off and negative sentiment. We are not short-term oriented so we take the view that this is a good time to take positions.”
The fund, which is at an advanced level of investor commitment, is expected to close between Q2 and Q3 of 2015.
Current prospective investors in the fund include insurance firms, pension funds, development finance institutions (DFIs) and other qualified institutional buyers (QIBs), as well as high net worth individuals (HNIs) in Nigeria and across the Middle East and Far East.
The fund will be managed by Eczellon International, with activities overseen by an investment committee that includes Florin Vasvari, a professor and a non-Executive Director of Eczellon Capital. Vasvari teaches private equity, finance, and accounting at the London Business School.
Eczellon Capital has already identified investment opportunities for the fund and intends to invest in these opportunities. However, Eczellon expects a strong deal flow beyond the already-identified investment opportunities.
The fund will invest in and support unlisted enterprises with high capital growth potential over the medium to long-term (ranging from three to five years).
According to Lami Adekola, Eczellon Capital’s Head of Investment Banking, there is a potential deal flow of $1B just in Nigeria’s power sector. “The role of PE in the second phase or refinancing of power assets cannot be overemphasized,” said Adekola.
“We are already working with three generating companies (GENCOs), for which we are looking to raise capital for refinancing of earlier loans. However, we cannot fund all of that on our own and will be co-investing.”
Eczellon Capital assisted Nigerian companies in securing over $140M in committed capital in 2014 alone. The company seeks to further expand financing to its focus sectors in the coming years with the launch of the new PE fund, according to Onaolapo.
The fund will be administered in tranches over a two-year period. “Our goal is to aid the proliferation of global growth companies across Africa and to support governments in achieving the developmental objectives of their mandates,” Onaolapo said.
Source: Eczellon Capital launches $250m P.E. fund in bet on growth | BusinessDay.
- Global X MSCI Nigeria ETF: Speculative multi-year play approaching attractive valuation
- Bloomberg African Business Weekly: Afreximbank, PTA Bank, South African Private Equity, Powering Rwanda, & Agriculture in Gabon (Video)
- ARM to launch Nigeria’s first infrastructure fund with $250M
- Advancing Africa? No more ‘business as usual’: Akinwumi Adesina, Nigeria’s Agriculture Minister & candidate for AfDB President
- Norway fund mulls West Africa expansion with Ghana investments
- Private equity investment in Africa heats up as pension funds stay local
- Nigeria – Racing ahead with ambitious infrastructure plans: This is Africa/Financial Times (Infographic & Report)
- Africa’s richest man Aliko Dangote courts Blackstone to boost Nigerian gas
- Power reform shines a light on Nigerian stocks
- Why you should care who’s in line to run the African Development Bank
- Africa-focused private equity funds AFC and Harith merge $3.3 billion in electric power assets
- In Africa’s oil capital, Africa’s richest man built an empire on sugar
- Africa growth stays strong even as China slumps: Akinwumi Adesina, President, AfDB
- Private equity firm Actis to set up $1.9B pan-African renewable energy business
- Nigeria’s growth no longer oil-dependent: Miguel Azevedo, Head of Investment Banking for Africa at Citigroup (Video)
- Invest Nigeria – Think Anambra (Presentation): Anambra State Investment Promotion and Protection Agency (ANSIPPA)
- Nigeria plans $25B infrastructure fund
- IFC invests $50M in Nigeria’s Seven Energy debt issuance
- The number of millionaires in Nigeria, Kenya and Angola will more than double by 2030
- Blackstone eyeing power generation and distribution opportunities in Africa: Stephen Schwarzman, Chairman and CEO, The Blackstone Group
- African IPOs Set to Double Capital Raised in 2016: Baker & McKenzie (Infographics)
- Nigeria’s sovereign wealth fund grew assets by 20% to $1.07B in 2015, says CEO Uche Orji
- Aliko Dangote, Africa’s richest man, partners with Blackstone and Carlyle for Africa investments
- Africa: Firmly on the map
- New York pension fund to invest up to $5.4B in Africa
- Private equity fund backed by two of South Africa’s richest men raises $345M to invest in Africa
- Gulf states investing in series of projects to power Africa growth
- President Goodluck Ebele Jonathan (“GEJ”) of Nigeria is clueless, incompetent, and callous: 35 reasons why this is a big lie
- Angola’s $5B sovereign wealth fund nearing African, global private equity-style deals
- Standard Bank opens Ethiopia office to cater to fast growing economy
- Africa: Now a major player in emerging markets financial services
- Nigeria’s Power Industry Bailout Heads Off Threat to Lenders
- Ethiopia & Djibouti agree on Blackstone-backed $1.6B fuel pipeline
- Africa’s megaprojects: 326 billion reasons Africa is on the move (Photos, Infographic & Video)
- GE books $2.5B in African orders from oil to locomotives, beating 2018 target by $500M
- Here are the eight candidates running for African Development Bank President
- Africa had record levels of private equity exits in 2015: AVCA & EY
- Blackstone and Black Rhino announce appointment of Lamido Sanusi, Emir of Kano and former Central Bank of Nigeria Governor, as Chairman of Black Rhino
- Three exciting developments in the solar power space in Africa
- Lagos, Nigeria: Africa’s Big Apple